Cash is a bit of freedom. It is hard to trace and so the the powers that be don’t like it. Who uses cash anyway but drug dealers, gamblers, people at strip clubs, and other miscreants?
Additionally (and more importantly for the central planners) cash forces the hand of the Fed. The economists at the Fed do not like this. The central bank can never impose negative interest rates effectively if cash is widely available as an option. As interest rates push below zero (in an economic crisis) people will take their money out of banks and go to cash. This cash has a yield of 0%. Not much. But the yield on the “mattress money” is still more than if your money is in the bank in a negative rates environment. The Fed sees this as a big problem. It wants to be able to force you to spend by destroying your savings. If people can go to cash they can buck the Fed.
And who are you, simpleton consumer, to buck the Masters of the Universe?
The Federal Reserve wants total control over the economy. Your independence and dignity is of little (no) concern to the FOMC.
I wonder why Bitcoin, which is outside of the Federal Reserve system, continues to gain in popularity?
Goodfriend’s dislike for cash could become an issue in his confirmation hearings, which are not yet scheduled. Senators could soon be getting an earful from constituents who fear that taking away paper money is a step toward socialism or totalitarianism. Those voices are already being heard. “Is Marvin Goodfriend the Worst Fed Nominee of All Time?” asks a Dec. 1 post on the website of the Mises Institute, a think tank for the Austrian school of economics. An earlier Mises post in which Goodfriend’s name was first raised said, “Given his radical views on monetary policy, it’s not hyperbole to suggest that Goodfriend’s nomination would represent a genuine danger to the economic wellbeing of every American citizen—or at least those outside of the financial services industry.”
It’s not just the Mises people who want to hang onto paper money. “Cash Means Freedom, Which Is Why So Many Officials Hate It” was the headline on a post by the libertarian Reason Institute last year. Last year, in the Wall Street Journal, financial commentator James Grant attacked a book called The Curse of Cashby Harvard’s Kenneth Rogoff, writing, “The author wants the government to control your money. It’s as simple as that.”